Lock it in: MGC Pharma will be researching and producing cannabis in Europe for decades
Health & Biotech
Health & Biotech
Special Report: Making good on its promises, bio-pharma company MGC Pharma has signed a long-term lease agreement on the 6,000sqm site for its production and research facility in Malta.
The news is a massive step for MGC Pharmaceuticals (ASX: MXC) in the construction of its Maltese, state-of-the-art Good Manufacturing Practice (GMP) production and research facility. It has been a long time coming — MGC was granted permission to cultivate, produce and research cannabis for medical purposes in Malta in April last year.
It is also a major event for the Maltese medical cannabis industry as MGC Pharma’s facility will be one of the first commercial European GMP-grade production and research facilities in the country within the medical cannabis sector.
This will make Malta a beacon of expertise for cannabinoid-derived medicines and research, with subsequent products to be delivered into the European Union and global markets.
The long-term lease covers several decades and will see a large scale, eco-friendly commercial facility will have a production capacity of over 8,000 units per hour of each product, which is a material production volume for the pharmaceutical industry.
Site works are expected to start immediately and construction is due to begin this quarter, meaning MGC will be able to significantly scale up its existing production capacity and future revenue generation potential, which is currently centred on its research and manufacturing facility in Slovenia.
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Roby Zomer, co-founder and managing director of MGC Pharma, described the signing of the lease, announced as part of a government signing ceremony held in Malta on Thursday, as transformative for his company.
“Providing a gateway to key European and global markets, the Maltese facility, when constructed, will be our centralised European production and distribution hub,” he said.
“The lease agreement is a key step forward, and with planning approvals also in place we will now look to swiftly move into the construction phase.
“The state-of-the-art Maltese facility is to be a key asset for MGC Pharma to provide a platform for future product development and commercial growth, with large-scale production driving strong future revenues upon completion.”
Kurt Farrugia, CEO of Malta Enterprise, said the facility would be a huge boost for Malta.
“We are very proud to have MGC Pharma operating in our medical cannabis ecosystem, together with other global players. The signing of this lease agreement, is yet another landmark in MGC’s progress towards establishing and consolidating its presence in Europe,” he said.
“Malta Enterprise will keep assisting the industry to flourish within a transparent regulatory framework as a jurisdiction of excellence in medical cannabis.”